Presentation on theme: "STATE OF THE CE INDUSTRY Steve Koenig Director, Industry Analysis Consumer Electronics …and the potential impact."— Presentation transcript:
STATE OF THE CE INDUSTRY Steve Koenig Director, Industry Analysis Consumer Electronics …and the potential impact on product returns. With Special Focus On:
Today’s Trends … Macro overview Channel trends Shopping Behavior Purchase Drivers Tomorrow’s Opportunities What does all this mean for product returns?
Industry Megatrends Mobility and connectivity Consumer Empowerment Engagement DEVICES CONSUMERS RETAILING Mobile Connected Devices M-commerce Showrooming Social More $ from fewer customers Relationships, community Partnerships
Source: CEA, U.S. CE Sales and Forecasts, July %7.7%3.7%0.2% 4.5% % Growth:
CE Big Five Source: CEA 58%41%65%62%73% % HH Owning 2013 Shipment Dollars (Billions)
CE Lifecycles 9 Years 4 Years 3 Years 2 Years
Cell phone that is not a smartphone Dedicated e-reader Portable game device Camcorder Portable digital audio/MP3 player GPS or navigation device Video game console Desktop computer Digital camera Tablet computer DVD or Blu-ray Disc player Laptop/netbook computer Smartphone HDTV At immediate risk of becoming obsolete Most at risk in the near future Source: CEA, 15 th Annual CE Ownership Study, April 2013
Trending in Technology Ultra HDTV Wireless Speakers Soundbars Headphones Xbox ONE, PS4 Wearable Tech VIDEO AUDIO GAMING MOBILE CE returns watchlist? CES Tech Zone
% of CE Dollar Sales by Macro Channel 4Q End Sept 2013 Source: TraQline US Consumer Survey – Total CE
Internet Retailers Continue to Gain $ Share Change % Change % % 4Q End Sept 2013 Discount Store Elec/majap Store Direct / Internet Office Supply Computer Spec Other $ Market Share Source: TraQline US Consumer Survey – Total CE
CE Dollar Market Share: 4Q End Sept 2013 Source: TraQline Dollars R4Q Q2’13
Retailing Trends Big Box Retail Competing on Price Customer=Commodity Store within a Store Brand Stores Specialty Stores Pop-Up Stores SUNRISE SUNSET
CE Superstores Redefined Smaller Footprints Store within a Store Solution Selling Relationships Destination, Demos Service
Impact to Returns Brand and specialty stores potentially better at solution selling. Retailers emphasize service; offer set-up Online: more purchases ‘in absentia’? Value mix moving up (higher expectations?) GOOD BAD
(MORE MOBILE) SHOPPING BEHAVIOR
Spending on Consumer Electronics Annual Household Spend Source: CEA CE Ownership and Market Potential Study (2013) Base: U.S. adults (n=2,000) Average Annual Consumer Spend
Where Consumers Browse and Research CE Source: CEA Multi-Channel Alignment in CE Retail (2013) Base: Online U.S. Adults (n=1,027) Question 4: “How often do you use each of the following retail channels when browsing for and researching electronics products?”
Omnichannel Marketing 50% of consumers will use a mobile device to help them shop for CE. 15% 2013 Holiday Mobile Channel Sales Of Online Holiday Sales 8.4 Billion Dollars CEA Holiday Research:
Pre-Purchase Research Activities Source: CEA, Millennials: The New Face of Retail (2013) Base: Online U.S. U.S. Consumers ages 13+ Q: Which of the following activities, if any, did you do before purchasing the electronics product you purchased most recently?
General In-Store Pre-Purchase Activities Source: CEA, Millennials: The New Face of Retail (2013) Base: Online U.S. U.S. Consumers ages 13+ Q: Which of the following activities do you usually do at a BRICK AND MORTAR STORE before purchasing an electronics product?
Mobile Device Used for Shopping at Physical Store 15% 2% 7% 13% 26% 37% Source: CEA Multi-Channel Alignment in CE Retail (2013) Base: Online U.S. Adults (n=1,027) Question 20, “How often do you use a mobile device, such as a smartphone or tablet, when shopping for electronics products in a retailer’s physical store?” Every time (100%) Usually (75-99%) Often (50-74%) Sometimes (25-49%) Rarely (1-24%) Never (0%) 22%
Impact on Returns More than number and web-page. Consumers help themselves – Set-up, troubleshooting, repair Compulsive Buying? Gluttony of online purchasing GOOD BAD
Site-to-Store Shipping is growing Source: TraQline Units R4Q Q2’13 -5% 4% % Online Customers who choose “ship to store” 7% 4% 5% -10%
WHAT’S DRIVING THE PURCHASE?
CE Product Purchase Drivers Source: CEA, Millennials: The New Face of Retail (2013) Base: Online U.S. Consumers ages 13+ Q: When you are deciding which electronics products to buy, how important are each of the following in your decision process?
Experience & Assortment Increasingly Important in Store Selection Source: TraQline Units R4Q Q2’13 % %
Impact to Returns More to the buy than just price. Trusted brands Shoppers seeking experience and know-how. Bargain hunters will persist Lower consumer tolerance for product/set-up issues? GOOD BAD
2014 International CES: Hot Products To Watch
Theme for 2014 CES DEVICES CONNECTIVITY CONTEXT
Smartphones Trends for 2014 – Curved, semi-flexible screens Samsung and LG Will trickle down to other OEMs later – Pushing the limits of pixel density (PPI) – Much larger batteries – 4K video capture – More size experimentation
Smartphones Samsung Galaxy Round – Curved 1080p AMOLED display – MSRP ~$1300 (import) – US release early 2014 – Same specs as Note 3 LG G Flex – Curved, flexible 6-inch 720p screen – MSRP ~$1000 (import) – Screen can flex up to 88 lbs force
Smartphones Huawei Ascend Mate II – Follow-up to 2013 CES debut – 2GB RAM, octa-core processor – Likely 6-inch 720p screen Sony Xperia Z2 – Follow up to 2013 CES launch – Sony’s 2014 flagship – 20MP camera, 4K video capture – Water and dust resistant
Tablets Trends for 2014 – Size experimentation above 10.1 inches – Dual operating systems – X86 based designs might get some attention
Tablets Panasonic ToughPad 4K – 20-inch Windows 8.1 tablet – 2840x2560 IPS screen – Designed for “creatives” with stylus and Intel Core processor Huawei PhoPad – Rumored CES release – Competitor to Asus PadFone – Smartphone docks into tablet – Asus TODAY announced PadFone v2 coming to US in 2014… Samsung Galaxy Note 12.2 – Rumored to be in production – Possible CES debut?
TVs: UHD 4K and Beyond Trends for 2014 – Ultra HD everything, everywhere – Curved (and possibly flexible) displays – More OLED promises? – What about Ultra HD content 2013 Netflix announcement
TVs: UHD 4K and Beyond LG Curved OLED TV – 77” curved OLED – 3D and SmartTV capable Flexible TVs – Korean sources report that Samsung and LG may demo flexible TVs – Manipulate viewing angles for best possible picture – What about 3D? Samsung 111” Ultra HD – Claim: World’s largest 240 Hz Ultra HD TV Dish Network Virtual Joey app – Allows Dish customers access to content on other devices (consoles, SmartTVs) – Allows access without STB
Health & Fitness Trends for 2014 – Product mix is all over the map – Lots of traditional products with smartphone integration – CE bridges gap between electronics and other industries.
Health & Fitness Sleep Number x12 Bed – Allows for voice- controlled adjustments – Sleep tracking tech integrated with sleep patterns and quality data Reebok Checklight – Checklight detects concussive impacts to athletes – Concussions in youth sports are a major concern
3D Printing Trends for 2014 – A media darling, 3D printing is maturing – Format wars? Extrusion vs. stereolithography – Price vs. output quality
3D Printing WobbleWorks 3Doodler – World’s first 3D printing pen – Heats and cools plastic as it passes through the pen – $100, available Feb. Pirate 3D “Buccaneer” – Began as a Kickstarter project – High-res 3D printer for consumer use – Has its own “app store” to download design files – $500, available April
Wearables Trends for 2014 – Wearables will be everywhere Smartwatches will be the main focus – Most wearables will be focused on the sensors embedded in them – Innovation for wearables will be in software and how much like a “regular accessory” they look Geek chic is not going to work for everyone
Wearables Neptune Pine Smartwatch – Takes a SIM card, requires no additional phone – Runs full Android OS – 2.4” screen, dual 5MP cameras – Started in 2013 as a Kickstarter project Qualcomm Toq – Works with Android smartphones – Uses an always-on Mirasol e- paper display – Charges wirelessly and lasts for several days between charges
Parting Thoughts Mobile technology: the epicenter for returns? The channel continues to innovate. – Engagement: SwS, apps, social, service, stores – Omnichannel Marketing Price still important, but other factors rising. – Changing the narrative CES 2014: Devices, Connectivity, Context Steve Koenig Director, Industry Analysis Consumer Electronics